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I don't know about faction history in the game ( except that Enfos are widly hated ), but i know that 3-faction war is easier to balance than 2-faction or 4+. So, what i said is more in the lines of making everything a bit easier on the devs and on pop to avoid one faction having too much power. I can't speak for Aroa, but believe me, i don't agree with a lot of what she says.
But i want to leave a small note here: Whatever you people trying to say that a fresh server would be more damaging and that "FE cannot be compared to other games" is a REALLY weak argument. FE is a MMO. You want to draw different lines but no matter, it still has a LOT of stuff that is just familiar to those who play. A fresh server, when well marketed, WILL attract new players. I don't think it should be done now, but it should be done somewhere down the road when the devs actually get the game functional. What you CAN'T do, is pretend that bandaid-fixing the game for years straight is a good idea. It isn't.
It's nice that you guys feel like veterans and want to support the game, but honestly, drop the throne. We all want FE to thrive, and for that, we need something new, that attract pop. There's nothing wrong with a fresh server if you get your convenience transfered. If any of you kept tabs on fresh servers on WoW pservers, you would know how huge a fresh server is.
What i don't want is LO foregoing quality in name of pop, we had years for G1 doing this crap already. But i also won't pretend that FE in it's actual state is in any way, shape or form, thriving. You guys are not enough.
What FE has right now, is not enough.

As a casual FE player, who left for a while but just want a update to get back, here's what i would do:
- New server. I'm sorry for the veterans who stuck for the 9 years on the same server, but FE needs a fresh start with it's new stuff. Word of mouth does wonders, and a fresh start allows people to compete on the same foot. The world thrives. You have 9 years of a game plagued by duping, hacking, etc etc. Do not attempt to make this game economy seem less broken. It isn't, and honestly, LO should NOT keep it in Limbo just because you want to sit on a throne or whatever. Keep the old server, allow the cosmetic stuff to be transfered, you earned that right, and some of the convenience, but keep everything advantageous OUT of the new server.
"You reign over nothing."
- I would lock leveling for like one, or two months into Sector 2. Mix the 6 factions into 3 ( better balancing pvp-wise. Chota+Vista ( Nature-savagery faction ), Tech+Traveler ( Amoral scientists and enterpreneurs ) and Lightbringer+Enfos ( Good set of morals, kinda overreacting on the whole establishment thing. ). Make the faction zone more central and allow pvp INSIDE the faction zone. Which means you would end up pvp'ing for some resources that other factiosn compete. Don't keep all the pvp zones so far away. So, by this placement: You could circle S2 to PvE level, and then go to your faction hub, and grab your quest reps and such. The most rewarding quests would be inside the faction zone, a circle that would be central in the S2 and allow for some cool combat. Hell, you could put some awesome city ruins for a more lore approach of a city needing to be controled.
I think S2 gets you to level 30? Some quest rewards and xp could be adjusted, but overall, the better idea would be to keep crafting weaponry better than questing stuff, so crafters would be way more valuable.
Of course, this is just an idea. LO has way more urgent issues to solve.